Fitch ups Liberty to stable

Fitch Ratings said it revised Liberty Group Ltd.'s outlook to stable from negative.

The agency also said it affirmed its national insurer financial strength rating at AA(zaf), national long-term rating at AA-(zaf) and its subordinated debt issue rating at A+(zaf).

The outlook revision reflects the structural improvement in how Liberty manages its policyholder persistency, Fitch said.

Liberty's new business margins remain low as it continues to be adversely affected by the 2008 and 2009 strengthening of persistency assumptions, the impact of fixed-cost strain due to reduced sales volumes and the relative increase in acquisition costs, the agency said.

The ratings also consider the strength and diversity of its distribution network, Fitch said.

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